Compensation Management at Tata Consultancy

Compensation Management at Tata Consultancy Services Ltd.: Coping with Turbulent Times in the Indian IT Industry The announcement came as s jolt not only to TCS employees but also to the entire Indian IT industry. The company came in for severe criticism and it was accused of not being transparent with respect to EVA calculation. However, some analysts felt that the pay cuts were a result of the macroeconomic challenges that the Indian IT companies were facing -- rapid appreciation of the rupee against the US dollar and the recession in the US economy (USA was the largest market for the Indian IT companies) Issues:

» Analyze TCS' HR practices with respect to its policy related to compensation of its employees.

» Discuss various concepts related to compensation management.

» Discuss the importance of variable compensation in light of its ability to motivate employees and enhance organizational productivity.

» Discuss the pros and cons of the EVA-based compensation management system and also analyze EVA as a performance measurement tool.

» Understand the rationale behind the cut in the compensation of the employees at TCS.

» Appreciate the importance of HR goals and strategies in the success of an organization "There's no ceiling on the bonus. It can be equal to the fixed portion of the salary, providing the cell has shown that kind of EVA growth. It is not just compensation, we wish our employees to also get a feeling of ownership for their own unit, and its performance. We want each employee to feel as if they are running their business. They have to think like entrepreneurs and know the cost attached to their business and how will they add value to the investment."1 *- S. Ramadorai*, CEO and Managing Director, Tata Consultancy Services Ltd., in 2000, *Regarding* its Economic Value Added (EVA)-based Compensation Management System. "We undertake a...

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...Week 4 : Compensation and Morale Midterm
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Time Remaining:
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Page 1 - Essay
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Question 1.
1. (TCO A) How have customers' expectations of their sales rep and their role in
the 21st century changed from those customer expectations of 30-40 years
ago? (Points : 20)
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Question 2.
2. (TCO A) As a sales rep, you are required to develop an annual sales plan for
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...TATACONSULTANCY SERVICES
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TataConsultancy Services Limited (TCS) (BSE: 532540, NSE: TCS) is an Indian multinational information technology (IT) services, business solutions and consulting company headquartered in Mumbai, Maharashtra. TCS is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. It is one of India's most valuable companies and is the largest India-based IT services company by 2012 revenues. The company is the largest India-based IT services company by employee count as well.
HISTORY
1968 to 2000
TataConsultancy Services (TCS) was founded in 1968. Its early contracts included providing punched card services to sister company TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of India, and providing bureau services to Unit Trust of India.
In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The recruits comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who became the first TCS employees to enter a formal graduate trainee programme.
In 1979, TCS delivered an electronic depository and trading system called SECOM for the Swiss company SIS SegaInterSettle. TCS followed this up with System X for the Canadian Depository System and automating the Johannesburg Stock...

...﻿Chapter # 1
Key Terms:
ALLOWANCES~ Compensation to provide for items that are in short supply
COMPENSATION~ All forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship
COST-OF-LIVING ADJUSTMENT~ Percentage increment to base pay provided to all adjustments employees regardless of performance
EXTERNAL COMPETITIVENESS~ Comparison of compensation with that of competitors
INCENTIVES (variable pay)~ Onetime payments for meeting pre-established performance objectives in a future time period.
INTERNAL ALGINMENT~ Pay comparisons between jobs or skill levels inside alignment a single organization
MERIT INCREASE~ Increment to base pay in recognition of past work behavior
RELATIONSHIP RETURNS~ Psychological returns employees believe they receive in the work place. (Learning opportunities, recognition, status, challenging work and so on.)
SALARY~ Pay expressed at an annual or monthly rate.
TOTAL REWARDS~ All rewards received by employees including cash compensation, benefits, and relational returns.
WAGE~ Pay expressed at an hourly rate
WORK/LIFE PROGRAMS~ Integrate their work and life responsibilities
Review Questions:
1. How do differing perspectives affect our views of compensation?
Society has many differing views when it comes to compensation, society views...

...This is to inform you that TataConsultancy Services (TCS) is a purely merit-based employer. Please make a note of the following points:
TCS DOES NOT
 Send job offers from free internet email services like Gmail, Rediffmail, Yahoo mail, Hotmail, and so on.  Ask you to deposit any money for giving job offers to Experienced Professionals or Fresh Graduate Trainees.  Appoint any agent/agency/company to advertise about TCS Off campus hiring or conduct any employment interviews or make offers of employment/benefits on its behalf. Some examples of the email IDs used for sending fake job offers: tata@interviewmail.com, tata.info@interviewmail.com, tata.apply@gmail.com, tataconsultancyservice@one.co.il, tcs.hrdirectrecruitdept@hotmail.com, ceprujem@supernet.com.bo, careers.tcs@companyhr.info, tcs_hr@tcs.com, tataconsultancycareer@hotmail.com, tataconsultanyservices.tcs@gmail.com, tataconsultancyservicesinfo@tcs.com, tataconsultancyservice1@hotmail.com, tata.technologist.com, tataconsultancyservice_001@hotmail.co.uk, tata@tech-center.com, tcsignite2012@gmail.com, kshudip@gmail.com, careers@tcshrindia.com, hr.tcs@live.com
Considering the technical feasibility of receiving spoofed mails, candidates are requested to take due care to validate the authenticity of the source of the email. Please see some of the sample Fake emails.
Queries, if any including request for authentication of job offers, may be addressed to...